Sydney, July 10, 2007 (ABN Newswire) - Australian shares fell in morning trade as investors locked in profits in recent gainers such as the top miners. At Midday the ASX200 index has shed 21 points to 6,380 and on the futures market the SPI 200's down 22. In economic news, Australia's 2007/08 raw sugar production would be almost 10 per cent down on initial forecasts because of adverse weather according to industry body Canegrowers. Woolworths today reported a 9.6 per cent rise in fourth quarter sales and upgraded its full-year profit outlook. Fourth-quarter sales rose to over $9.8 billion from $8.96 billion. Analysts had differed in their expectations forecasting a rise of between 7.6 and 9 per cent. Comparable store sales in the core food and supermarkets business rose 8.2 percent in the quarter and the retailer said it expected year net profit to grow by 25-27 percent, compared with a previous forecast of 20-24 percent. Shares in Woolworths have eased 1.72% to $28.55. Rinker's takeover by Mexico's Cemex is now almost a given with Cemex notifying the ASX it today reached 89.76 percent share ownership, just shy of the required 90 percent. Cemex, set to become the world's biggest building material company by revenue with the takeover, can oblige minority Rinker shareholders to sell their remaining shares and delist the company once it has 90 percent. Monterrey-based Cemex, which has offered $14 billion for all Rinker shares, won majority control of Rinker in June and took over the board of directors. The Rinker takeover is the biggest ever by a Mexican company and one of the biggest ever in Latin America. A combined Cemex-Rinker will have annual sales of about $23.6 billion. Shares in Rinker are 1.06% lower at $18.69. The best performing index this morning is the Discretionary Index rising by 3 points to 2,893. Harvey Norman is leading the charge 2.28% higher at $5.39. Publishing and Broadcasting and GUD Holdings have also advanced. At the other end of the market, the Energy Index is down 146 points to 14,753. Leading the falls is Arrow Energy, 6.02 per cent lower at $2.50. QLD Gas Company and Caltex are also tracking lower. In Tokyo, the Nikkei is 28 points weaker and in New Zealand the NZSX-50 is up 11. Gold is currently trading at $660.10 U.S an ounce and one Australian dollar's buying 86.01 U.S cents.


Source: Finance News Network © 2007 http://www.finnewsnetwork.com.au

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